Scottish Housing Market Review: Q2 2022

Scottish housing market bulletins collating a range of statistics on house prices, housing market activity, cost and availability of finance and repossessions.


3. Residential LBTT

Residential LBTT revenues excluding ADS rose sharply from £20.8m in February 2021 to £38.1m in March 2021, before falling to £18.3m in April, as transactions were brought forward due to the temporary increase of the zero rate threshold for all buyers to £250K, which took effect on 15 July 2020 and ended on 31 March 2021. Then from May 2021 residential LBTT revenues picked up and remained elevated relative to previous years, with revenue for the 2021-22 financial year 53.3% higher than the average for 2019-20 and 2020-21.

This trend has continued in the first two months of 2022-23, with revenue 55.8% higher than the same two months in 2019-20. The increase in residential LBTT revenue can be explained by a combination of higher transaction volumes (see Chart 1.2) and in particular higher house prices (see Chart 2.1).

Chart 3.1 Residential LBTT Revenue (Excluding ADS, Monthly, £ millions)
Chart 3.1 plots the residential land and building transaction tax (“LBTT”) revenue each year on a monthly basis from April 2019 to May 2022.

Source: Revenue Scotland

Contact

Email: William.Ellison@gov.scot

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